Benefit cheats are costing the taxpayer £1.7bn a year

BENEFIT fraud cost taxpayers a shocking £1.7billion last year, an official study has revealed.

Matthew Elliott of the TaxPayers’ Alliance isn't pleased with the current benefits bureaucracy []

Cheats stole more than £1.2billion by falsely claiming housing support, jobseekers allowance and disability benefits, the National Fraud Authority found.

Another £500million went in rogue claims for tax credits and council tax relief. The astonishing cost of benefit fraud accounted for nearly 10 per cent of the £20.3billion the public sector lost to cheats in 2011.

Yesterday’s report found that fraud of every kind cost Britain an estimated £73billion last year – £1,441 for each adult in the UK.

It is the highest recorded figure, nearly doubling the previous year’s £38billion – though the watchdog put the rise down to better analysis rather than increasing fraud.

It can have devastating consequences

Chief executive Stephen Harrison

The lion’s share of the losses came in the private sector, accounting for £45.5billion – with the worst records being in banking, insurance, mortgages and business. The public sector’s £20.3billion loss included £14billion in tax evasion. The report also highlighted £6.1billion of fraud against individuals while charities were tricked out of £1.1billion.

Chief executive Stephen Harrison said: “From large businesses and high street retailers to pensioners in their own homes, we are all at risk of being victims of fraud. It can have devastating consequences.”

The Department for Work and Pensions said benefit fraud would become harder under the planned new Universal Credit scheme.